EUR/USD on a Daily TF is trading higher. The euro zone reported Trade Balance surplus, mainly due to a decline in energy imports. US Building Permits and Housing Starts came in slightly above the forecast. The real estate sector is supported by low interest rates. Later today the US releases its Industrial Production. Yesterday’s Manufacturing PMI was almost in line with the forecast of 52.5. The JOLT data will follow, the forecast is optimistic, which makes sense considering the exceptional rise in Nonfarm Payrolls for November (266K).
The pair has hit our 200 EMA target and met the resistance at 1.11745. Bullish MACD histogram is increasing. The price is currently slightly below the 200EMA around 1.11578.
There are also 2 speeches of FOMC members Rosengren and Williams scheduled at 5:30pm GMT.
Resistance: R1 1.11745, R2 1.11996, R3 1.12413
Support: S1 23.6% Fibo 1.11240, S2 Trend line down 1.10969, S3 38.2% Fibo 1.10772
GBP/USD on a Daily TF has lost all of its electoral bullish momentum and hit our 1st support target at the 50% Fibo level, as Prime Minister Boris Johnson enters his tough stance on Brexit again. Now that he has a massive majority in parliament, he has put forward a bill to make sure that the Brexit transition is completed by its deadline on December 31st 2020. PM Johnson stated that there will be no extension and the UK will leave the EU without a deal if no agreement is reached by the deadline. Investors are likely to pay closer attention to UK economic indicators that weigh on politics regarding Brexit negotiations. No deal Brexit uncertainty outweighs the mixed data on UK employment figures. While there are plenty of jobs, and the unemployment rate remained unchanged at 3.8%, the wages growth is slowing down (3.2%), and the Claimant Count Change came in below the forecast.
The Parabolic SAR has reversed and is pointing down. The MACD bullish histogram is decreasing and the MACD line is pointing down and heading towards the signal line. The ADX is showing a strong trend (39.48).
Resistance: R1 61.8% Fibo 1.34529, R2 1.36137, R3 1.37505.
Support: S1 1.29732, S2 38.2% Fibo 1.28821, S3 1.27640.
USD/JPY on a Daily TF continues to trade bullish but contained, as there are new Brexit tensions and limited details about the US-Sino trade agreement and finalization.
The Parabolic SAR pointing up, the bullish MACD histogram is increasing.
Resistance: R1 109.727, R2 110.244, R3 110.698.
Support: S1 61.8% Fibo 109.362, S2 200EMA 108.793, S3 50% Fibo 108.423.